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TMI Blog2022 (11) TMI 1060X X X X Extracts X X X X X X X X Extracts X X X X ..... ti for the AYs 2007-08 and 2010-11 respectively. 2. Since the issues raised by the revenue in both the instant appeals are common, therefore, the same are adjudicated together and a common order is being passed for the sake of convenience and brevity to which both the parties have agreed. 3. Brief facts of the case are that a search u/s. 132 of the Act was conducted on the business and residential premises of Shri Vishal Agarwal on 24-09-2010. Certain documents belonging to the assessee, M/s. Surendra Kumar Agarwal-HUF were found, which was followed by issuing of notice u/s. 153C of the Act and the assessment order being framed u/s. 153C r.w.s 143(3) of the Act on 21-03-2013. But this assessment order was set aside by the ld. PCIT exercis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO under section 143(3) of the Income Tax Act, 1961. (ii) On the facts and circumstances of the case, the Ld. CIT(A) is not justified in facts as well as in law in quashing the assessment order dated 15.12.2015 passed by the AO under section "263/143(3) of the Income Tax Act, 1961. (iii) On the facts and circumstances of the case as well as on the points of law, the CIT(A) is not justified in law in setting aside the Jurisdictional decisions rendered in ITA Nos.35 to 40 & ITA Nos. 41 to 45 against issues involved in the case of assessee by the Hon'ble ITAT and thereby admitting assessee's additional grounds of appeal. (iv) On the facts and circumstances of the case as well as on the points of law, the CIT(A) is not justifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when all the assessment folders called for have already been in his possession is unjustifiable in the eyes of law. (viii) The appellant craves leave to add, alter or amend any or all of the grounds of appeal before or during the course of appeal. " 7. The Ld. Departmental Representative vehemently argued supporting the order of the AO and also stated before us that the Ld. CIT(A) erred in admitting the additional ground in the second round. He also submitted that the assessee has not challenged the validity of assessment proceeding u/s. 153A/143(3) of the Act in the first round and therefore, cannot raise any such legal issue in the second round of assessment proceedings. 8. Per contra, the Ld. Counsel for the assessee referring to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest thereon under section 201(1A). As stated above, the original order was set aside by the Tribunal for the limited purpose of allowing opportunity to the assessee on the issue of payment of TDS under section 201(1) along with interest thereon under section 201(1A). It is in the second round of appeal that the assessee has raised the ground by arguing that the financial year under consideration is prior to 1-6-2002 and hence even if the assessee is in default in deducting the tax, the assessee cannot be directed to pay the same under section 201 (l) along with interest under section 201 (1A). Therefore, now the question is whether this new ground can be taken up for the first time in set aside proceeding before the Tribunal. We find t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o record the satisfaction note. We find that before us the revenue has also failed to rebut this fact that satisfaction note was not prepared by the ld. AO regarding the incriminating material found in the course of search at the business/residential premises of Mr. Vishal Agarwal, which belonged to the assessee (M/s. Surendra Kumar Agarwal-HUF). The pre-condition for carrying out proceedings u/s. 153C is that if the ld. AO of the 'searched person' and the ld.AO of the 'other person' in whose name incriminating material is found are different, then firstly 'satisfaction note' is prepared by the ld. AO of the 'searched person' mentioning the details of search material not belonging to the 'searched person' but belonging to the 'other person' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment proceedings under section 158BC of the Act; or (c) immediately after the assessment proceedings are completed under section 158BC of the Act of the searched person. " 3. Several High Courts have held that the provisions of section 153C of the Act are substantially similar/pari-materia to the provisions of section 158BD of the Act and therefore, the above guidelines of the Hon'ble SC, apply to proceedings u/s 153C of the IT Act, for the purposes of assessment of income of other than the searched person. This view has been accepted by CBDT. 4. The guidelines of the Hon'ble Supreme Court as referred to in para 2 above, with regard to recording of satisfaction note, may be brought to the notice of all for strict comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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